Question

P our Bio Foods Inc. offers free genetically modified seeds (GMS) to farmers in developing countries during the first season. Once GMS seeds have been planted one year, it becomes very difficult for the land to be fertile if any other seeds than GMS seeds are used. Therefore, providing free seeds in the first season is a strategic way to A Penetrate the market with introductory pricing. B. Use block or bulk pricing. c. Use price discrimination. op. Use bundling or bundle pricing. >> A Moving to another question will save this response. < < Question 16 of 40 > >>

Answer 1

Option A. Penetrate the market with introductory pricing Penetration pricing is a pricing strategy in which a firm offers its products or services at a lower price in the initial session. This lower price helps the product to penetrate into the market and captures the customers. In the first session the GMS seeds are given for free. Once it is planted, other normal seeds will not be grown there. Now the customers have to purchase the GMS seeds to plant and cultivate.